Académique Documents
Professionnel Documents
Culture Documents
The Web alone cannot be used to build brands; brand awareness potential is limited
Best bet is to wed traditional branding efforts with the interactivity and service capabilities of
online communications
Using IMC, the company carefully integrates and coordinates its many communication channels to
deliver a clear, consistent, and compelling message about the organization and its brands
Direct marketing
Internet/interactive marketing
Personal selling
Sales promotion
Promotion has several possible objectives and many pieces of marketing promotion aim to achieve
several of the following objectives at the same time:
Inform
Management may need to make their audience aware that their product exists, and to explain
exactly what it does. This is a particularly important objective for new products
Persuade
An important stage in creating favorable attitudes towards the business and its brands. Through
persuasive promotion, management will seek to persuade customers and the trade that their brand
has benefits that are superior to competitors
Image creation
Sometimes, promoting a brand image is the only way to create differentiation in the mind of the
consumer (e.g. lager advertising)
Reassurance
Much promotion (particularly advertising) is about reassuring customers that they have made the
right choice and encouraging them to stay loyal to a brand.
There are a large and growing number of promotional methods that businesses can use. The main
instruments - advertising, direct response mailing, sales promotion, public relations and direct
selling, are often mixed together as part of the promotional mix. Each has different strengths.
What is important is that the promotional mix is carefully planned and the results monitored to
ensure that the total promotional cost is controlled.
Advertising
Any paid form of nonpersonal presentation and promotion of ideas, goods, or services by an
identified sponsor.
Dramatizes company/brand
Direct Marketing-DM
In direct marketing organizations communicate directly with target customers to generate a
response and/or a transaction.
One of the major tools of DM is direct response advertising, whereby a product is promoted
through an ad that encourages the consumer to purchase directly from the manufacturer.
DM tools and techniques are also being used by companies that distribute their products
through traditional distribution channels or have their own sales force.
Four characteristics:
o Nonpublic
o Immediate
o Customized
o Interactive
Interactive/Internet Marketing
Interactive media allow for a back-and-forth flow of information whereby users can participate in
and modify the form and content of the information they receive in real time. Unlike traditional
forms of marketing communications such as advertising, which are one-way in nature, the new
media allow users to perform a variety of functions such as receive and alter information and
images, make inquires, respond to questions, and, of course, make purchase.
Sales Promotion
Sales promotion consists of short-term incentives to encourage the purchase or sales of a product or
service. The idea behind sales promotion is to generate immediate sales.
Sales Promotions are defined as those marketing activities that provide extra value to the sales
force, the distributors, or the ultimate consumers and can stimulate immediate sales.
Attracts attention, offers strong purchase incentives, dramatizes offers, boosts sagging
sales
Short-lived
Sales Promotion Sales promotion is generally broken into two major categories:
Important note: Promotion and sales promotion are two terms that often create confusion in the
advertising and marketing fields. Promotion is an element of marketing by which firms
communicate with their customers; it includes all the promotional-mix elements. In this course
PROMOTION is used in broader sense to refer the various marketing communications activities.
Publicity/Public Relations
Publicity refers to nonpersonal communications regarding an organization, product, service, or idea
not directly paid for or run under identified sponsorship.
Public relation is building good relations with the companys various publics by obtaining
favorable publicity, building up a good corporate image, and handling or heading off unfavorable
rumors, stories, and events.
Highly credible
Many forms: news stories, news features, events and sponsorships, etc.
Personal selling
Personal selling defines as the form of person-to-person communication in which a seller attempts
to assist and/or persuade prospective buyers to purchase the companys product or service or to act
on an idea. This face to face interaction gives the marketer communication flexibility; the seller can
see or hear the potential buyers reactions and modify message accordingly.
Most effective tool for building buyers preferences, convictions, and actions
Relationship-oriented
Promotional Management
In developing an integrated marketing communications strategy, a company combines the
promotional-mix elements, balancing the strengths and weaknesses of each, to produce an effective
promotional campaign. Promotional Management involves coordinating the promotional-mix
elements to develop a controlled, integrated program of effective marketing communications.
Advantages
Advertising
Disadvantages
Good
awareness
for
building
Impersonal - cannot
wide audience
Repetition
of
Highly interactive -
Costly - employing
lots of communication between the buyer a sales force has many hidden costs in
and seller
addition to wages
Excellent
for
Not suitable if there
communicating complex / detailed are thousands of important buyers
product information and features
Relationships can be
built up - important if closing the sale
make take a long time
Sales Promotion
Risk
of
losing
"credible" - since the message seems to control - cannot always control what
be coming from a third party (e.g. other people write or say about your
magazine, newspaper)
product
Cheap
way
of
reaching many customers - if the
publicity is achieved through the right
media
Advertising frequency
Product substitutability
For example, new products tend to need a larger advertising budget to help build awareness and to
encourage consumers to trial the product. A product that is highly differentiated may also need
more advertising to help set it apart from the competition - emphasizing the points of difference.
Setting the advertising budget is not easy - how can a business predict the right amount to spend.
Which parts of the advertising campaign will work best and which will have relatively little effect?
Often businesses use "rules-of-thumb" (e.g. advertising/sales ratio) as a guide to set the budget.
Stage 3: Determine the key Advertising Messages
Spending a lot on advertising does not guarantee success (witness the infamous John Cleese
campaign for Sainsbury). Research suggests that the clarity of the advertising message is often
more important than the amount spent.
Factors considered when choosing the advertising message:
Message generation
Message execution
The advertising message must be carefully targeted to impact the target customer audience. A
successful advertising message should have the following characteristics:
10
Type of message
Cost
Media vehicles
(e) Determining media timing: Must decide how to schedule the advertising over the course of a year.
Continuity
Pulsing
11
(2) The Sales Effects - has the campaign generated the intended sales growth. This second
area is much more difficult to measure.
12
Source
Message
Channel
Receiver
Destination
2
4
1
3
1. Receiver/comprehension: Can the receiver comprehend the ad? Marketers must know
their target market to make their message clear and understandable. A less educated person
may have more difficulty interpreting a complicated message.
2. Channel/presentation: Which media will increase presentation? Marketer should think
about the media where the advertisement will be presented.
3. Message yielding: What type of message will create favorable attitudes or feelings?
Marketers generally try to create agreeable message that lead to positive feelings toward the
product or service.
4. Source Attention: Who will be effective in getting consumers attention? The large number
of ads we are bombarded with everyday makes it difficult for advertisers to break through
the clutter. Marketers deals with this problem by using sources who will attract the
audiences attentionactors, athletes, rock stars, or attractive models.
13
Word-of-mouth
Indirect source: is a model who doesnt actually the message but draws attention to enhance
the ad.
Some ads use neither direct nor an indirect source; the source is the organization with the
message to communicate.
Herbert Kelman developed three basic categories of source attributes: credibility, attractiveness,
and power. Each influences the recipients attitude or behavior through a different process.
Source Attribute
Credibility
Attractiveness
Power
Process
Internationalization
Identification
Compliance
Source Credibility
Credibility is the extent to which the recipient sees the source as having relevant knowledge, skill,
or experience and trusts the source gives unbiased objective information.
Information from a credible source influences beliefs, opinions, attitudes, or behavior through a
process known as internalization, which occurs when a receiver adopts the opinion of the credible
source is accurate.
Two dimensions to credibility, expertise and trustworthiness.
Applying expertise
Companies use a variety of techniques to convey source expertise.
Sales personnel are trained in the product line, which increases customers perception.
Marketers of highly technical products recruit sales rep with technical background.
Applying trustworthiness
While expertise is important, the target audience must also find the source believable.
Finding celebrities with a trustworthy image is often difficult.
14
Many trustworthy public figures hesitate to endorse products because of the potential
Source Attractiveness
15
Overexposure
Source Power
A source has power when he or she can actually administer rewards and punishments to
the receiver.
The power of source depends on several factors. The source must be perceived as being
able to administer positive or negative sanctions to the receiver (perceived control) and
the receiver must think the source cares about whether or not the receiver conforms
(perceived concern) the receivers estimate of the sources ability to observe conformity
is also important ( perceived scrutiny).
When a receiver perceives a source as having power, the influence process occurs
through a process known as compliance
Message Structure
16
Extensive research has been conducted on how the structure of a persuasive message can
influence its effectiveness, including order of presentation, conclusion drawing, message
sidedness, refutation, and verbal versus visual message characteristics.
Order presentation:
Research on learning and memory generally indicates that items presented first and last are
remembered better than those presented in the middle.
Presenting the strongest arguments at the beginning of the message assume a primacy
Conclusion drawing:
Marketing communication must decide whether their message should explicitly draw a firm
conclusion or allow receivers to draw their own conclusions. Research suggests that, in general,
message with explicit conclusion are more easily understood and effective in influencing
attitudes. However, other studies have shown that the effectiveness of conclusion drawing may
depend on the target audience, the types of issue or topic, and nature of the situation.
Message Sidedness:
Another message structure decision facing the marketer involves message sidedness.
message are most effective when the target audience are already got a favorable
opinion about the topic.
Two sided message presents both good or bad points. It is more effective when the
target audience holds an opposing opinion or is highly educated. Two sided message
may enhance the credibility of the source.
Refutation:
In a special type of two sided message known as a refutational appeal, the communicator
presents both sides of an issue then refutes the opposing viewpoint.
Verbal versus visual message:
The nonverbal, visual elements of an ad are also very important. Both verbal and visual
portions of an ad influence the way the advertising message is processed. Consumers may
develop images or impressions based on visual elements.
Message Appeals
17
One of the advertisers most important creative strategy decisions involves the choice of an
appropriate appeal. Some ads are designed to appeal to the rational, logical aspect of the
consumers decision making process; others appeal to feelings in an attempt to evoke some
emotional reaction. Many believe that effective advertising combines the practical reasons for
purchasing a product with emotional values.
Comparative advertising
It is the practice either directly or indirectly naming competitors in an ad and comparing one or
more specific attributes. This may be particularly useful for new brands, since it allows a new
market entrant to position itself directly against the more established brands and to promote its
distinctive advantages.
Fear Appeals:
Fear is an emotional response to a threat that expresses, or at least implies, some sort of danger.
Ads sometimes use fear appeals to evoke this emotional response and arouse individuals to take
steps to remove the threat. eg. Drug ads,
Humor Appeals:
Humorous ads are often the best known and best remembered of all advertising message.
Humorous is usually presented through radio and TV commercials as these media lend
themselves to the execution of humorous message.
18
Availability of product (e.g. does the retailer actually have stock to sell?)
How can a business know whether a specific advertising campaign was effective?
As a percentage of sales, advertising expenditure varies enormously from business to business,
from market to market. For example, the leading pharmaceutical companies spend around 20% of
sales on advertising, whilst business such as Ford and Toyota spend less than 1%. An average for
fast-moving consumer goods markets (FMCG) is around 8-10% of sales.
In practice, the following approaches are used for setting the advertising budget:
Approaches to setting the advertising budget
Method (1) Fixed percentage of sales
In markets with a stable, predictable sales pattern, some companies set their advertising spend
consistently at a fixed percentage of sales. This policy has the advantage of avoiding an
advertising war which could be bad news for profits.
However, there are some disadvantages with this approach. This approach assumes that sales are
directly related to advertising. Clearly this will not entirely be the case, since other elements of the
promotional mix will also affect sales. If the rule is applied when sales are declining, the result will
be a reduction in advertising just when greater sales promotion is required!
Method (2) Same level as competitors
This approach has widespread use when products are well-established with predictable sales
patterns. It is based on the assumption that there is an industry average spend that works well for
all major players in a market.
A major problem with this approach (in addition to the disadvantages set out for the example
above) is that it encourages businesses to ignore the effectiveness of their advertising spend it
makes them lazy. It could also prevent a business with competitive advantages from increasing
market share by spending more than average.
Method (3) Task
19
The task approach involves setting marketing objectives based on the tasks that the advertising
has to complete.
These tasks could be financial in nature (e.g. achieve a certain increase in sales, profits) or related
to the marketing activity that is generated by the campaigns. For example:
Numbers of enquiries received quoting the source code on the advertisement
Increase in customer recognition / awareness of the product or brand (which can be
measured)
Number of viewers, listeners or readers reached by the campaign
Method (4) Residual
The residual approach, which is perhaps the worst of all, is to base the advertising budget on what
the business can afford after all other expenditure. There is no attempt to associate marketing
objectives with levels of advertising. In a good year large amounts of money could be wasted; in a
bad year, the low advertising budget could guarantee a further low year for sales.
20
6. Advertising - Effectiveness?
Judging the effectiveness of advertising
How can the effectiveness of an advert be judged?
The answer depends on what objectives or tasks were set for the advert.
The table below sets out some possible objectives/tasks and how the effectiveness of the advert
might be measured:
Advertising objective
Inform customers
-Sales
-Test customer awareness of brand recognition and
perceived values
21
7. Advertising- Media
Advertising media
There is a huge variety of media available through which a business can conduct an advertising
campaign. What are the main types of media and what considerations should a business make in
choosing between them?
The starting point in the selection of appropriate advertising media is a media analysis. This can
be defined as:
"An investigation into the relative effectiveness and the relative costs of using the various
advertising media in an advertising campaign"
Before committing an advertising budget it is necessary to carry out marketing research on:
- Potential customers
- Their reading habits, television-watching habits
- How many times the advertisers wish the potential customers to see an advertisement
- How great a percentage of the market they wish to reach, etc.
These elements all need to be considered and balanced to plan a campaign that will effectively
reach its target audience at a reasonable cost.
A useful distinction can be made between published media and visual/aural media.
Published or print media include:
National daily newspapers
Sunday newspapers
Consumer magazines
Specialist magazines
Internet
Radio
Cinema
Billboards
Transport
Direct mailing
22
that link them with generally approved campaigns such as care for the environment
To support the sales force advertising can make the job of the sales force easier and more
effective by attracting leads from potential customers and perhaps motivate them by
boosting the profile of the business
Take a look through any magazine and select a sample of adverts. Which of the above reasons do
you think are behind the adverts you choose? Dont forget that some adverts aim to achieve
multiple objectives.
What to advertise?
Factors that help answer the what are we advertising? focus on what the advertising message
should be. In general, there are really only two kinds of effective advertising message:
Firstly, does the business/product have a Unique Selling Proposition (USP)
A unique selling proposition is a customer benefit that no other product can claim
23
In reality these are rare, although that does not stop marketers from claiming them for their
products.
Secondly, does the thing that is being advertised add value and if so, how?
For example, advertising for washing powders will focus on the added value created by
whitening agents or the fact that a particular formulation will last longer than the competition (take
a look at the Fairy web site to see if you can spot the other added value features claimed for its
products)
Whatever is advertised, it is important that the message is:
Seen
Read
Believed
Remembered
24
E-commerce (you bought this marketing companion following tutor2us direct marketing
campaign!)
Magazine inserts
Telemarketing
Direct mail
Of the above direct marketing techniques, the one in most widespread use is direct mail.
Direct mail is widely thought of as the most effective medium to achieve a customer sales response.
Why?
The advertiser can target a promotional message down to an individual level, and where
possible personalize the message. There are a large number of mailing databases available
that allow businesses to send direct mailing to potential customers based on household
income, interests, occupation and other variables
Businesses can first test the responsiveness of direct mailing (by sending out a test mailing
to a small, representative sample) before committing to the more significant cost of a larger
campaign
Direct mailing campaigns are less visible to competitors it is therefore possible to be
A piece of direct mail is less interactive than a television or radio advert, although
There is increasing customer concern with junk mail the receipt of unsolicited mail
which often suggests that the right to individual privacy has been breached.
25
26
If a market size is small and the number of potential buyers is small, then personal selling may be
the most cost-effective promotional tool.
A good example of this would be businesses selling software systems designed for supermarket
retailers. On the other hand, where markets are geographically disperse or, where there are
substantial numbers of potential customers, advertising is usually the most effective.
(3) Customer information needs
Some potential customers need to be provided with detailed, complex information to help them
evaluate a purchase (e.g. buyers of equipment for nuclear power stations, or health service
managers investing in the latest medical technology). In this situation, personal selling is almost
always required - often using selling teams rather than just one individual.
By contrast, few consumers need much information about products such as baked beans or bread.
Promotional tools such as brand advertising and sales promotion are much more effective in this
case.
28
The two-way nature of the sales process allows the sales team to respond directly and
Frequent meetings between sales force and customer provide an opportunity to build good
long-term relationships
Given that there are many advantages to personal selling, why do more businesses not maintain a
direct sales force?
Main disadvantages of using personal selling
29
The main disadvantage of personal selling is the cost of employing a sales force. Sales people are
expensive. In addition to the basic pay package, a business needs to provide incentives to achieve
sales (typically this is based on commission and/or bonus arrangements) and the equipment to make
sales calls (car, travel and subsistence costs, mobile phone etc).
In addition, a sales person can only call on one customer at a time. This is not a cost-effective way
of reaching a large audience.
30
Shareholders
Trade unions
Pressure groups
The media
Promotional videos
Consumer exhibitions
31
Celebrity endorsements
Web sites
Business communication
Corporate identity design
Direct mailings
Web site
Trade exhibitions
Intranet
Notice boards
Employee conferences
Financial communication
Financial media relations
Given the wide range of techniques used in public relations, how is it possible to measure the
effectiveness of public relations?
It is actually quite difficult to measure whether the key messages have been communicated to the
target public. In any event, this could be quite costly since it would involve a large amount of
regular research. Instead, the main measures of effectiveness concentrate on the process of public
relations, and include:
32
Monitoring the amount of media coverage obtained (press cuttings agencies play a role in
33
Push
A push promotional strategy makes use of a company's sales force and trade promotion activities
to create consumer demand for a product.
The producer promotes the product to wholesalers, the wholesalers promote it to retailers, and the
retailers promote it to consumers.
A good example of "push" selling is mobile phones, where the major handset manufacturers such as
Nokia promote their products via retailers such as Grameenphone. Personal selling and trade
promotions are often the most effective promotional tools for companies such as Nokia - for
example offering subsidies on the handsets to encourage retailers to sell higher volumes.
A "push" strategy tries to sell directly to the consumer, bypassing other distribution channels (e.g.
selling insurance or holidays directly). With this type of strategy, consumer promotions and
advertising are the most likely promotional tools.
Pull
A pull selling strategy is one that requires high spending on advertising and consumer promotion
to build up consumer demand for a product.
If the strategy is successful, consumers will ask their retailers for the product, the retailers will ask
the wholesalers, and the wholesalers will ask the producers.
34
A good example of a pull is the heavy advertising and promotion of children's toys mainly on
television. Consider the recent BBC promotional campaign for its new pre-school program the
Fimbles. Aimed at two to four-year-olds, 130 episodes of Fimbles have been made and are featured
everyday on digital children's channel CBeebies and BBC2.
As part of the promotional campaign, the BBC has agreed a deal with toy maker Fisher-Price to
market products based on the show, which it hopes will emulate the popularity of the Tweenies.
Under the terms of the deal, Fisher-Price will develop, manufacture and distribute a range of
Fimbles products including soft, plastic and electronic learning toys for the UK and Ireland.
In 2001, BBC Worldwide (the commercial division of the BBC) achieved sales of 90m from its
children's brands and properties last year. The demand created from broadcasting of the Fimbles
and a major advertising campaign is likely to pull demand from children and encourage retailers
to stock Fimbles toys in the stores for Christmas 2002.
35
The distribution channel (a push strategy encouraging the channels to stock the
36
One problem with coupons is that they may simply encourage customers to buy what they
would have bought anyway. Another problem occurs when retailers do not hold sufficient
stocks of the promoted product causing customer disappointment.
Use of coupon promotions is, therefore, often best for new products or perhaps to encourage
sales of existing products that are slowing down.
Gift with purchase
The gift with purchase is a very common promotional technique. It is also known as a
premium promotion in that the customer gets something in addition to the main purchase.
This type of promotion is widely used for:
- Subscription-based products (e.g. magazines)
- Consumer luxuries (e.g. perfumes)
Competitions and prizes
Another popular promotion tool with many variants. Most competition and prize
promotions are subject to legal restrictions.
Money refunds
Here, a customer receives a money refund after submitting a proof of purchase to the
manufacturer.
These schemes are often viewed with some suspicion by customers particularly if the
method of obtaining a refund looks unusual or onerous.
Frequent user / loyalty incentives
Repeat purchases may be stimulated by frequent user incentives. Perhaps the best examples
of this are the many frequent flyer or user schemes used by airlines, train companies, car
hire companies etc.
Point-of-sale displays
Research into customer buying behavior in retail stores suggests that a significant
proportion of purchases results from promotions that customers see in the store. Attractive,
informative and well-positioned point-of-sale displays are, therefore, very important part of
the sales promotional activity in retail outlets.
37
(more importantly) watched by large numbers of people. They also attract significant media
coverage.
Arts sponsorship; arts events or organizations are not as well attended as sports events
but are often regarded as more worthy and more in keeping with the image of certain
businesses and brands.
Educational sponsorship; this can take several forms from the sponsoring of individual
students at college through to the provision of books and computers nationwide using the
redemption of product or store-related vouchers (e.g. Tescos Computers for Schools)
38